Topic: What determines the price of a Product or Coin? (Read 549 times)

Yeah sometimes this analogy might be easy but keying into it is very difficult it takes the one with mind to be able to survive what you might go through when it comes to business and demand and supply are supposed to be what every entrepreneur needs because the moment does two are absent then there is no business then does are like the pillars of every investment. The presence of recognition matters a lot and and the is why every project wants to hype There products to the what ever level that they might, so that people will see reasons why they need. There is a good chances that if a good project have good marketing then you should expect a good result from the project.


You can not underestimate any project because any project that you look down on might do well and you will not be happy at all, because if you look at the whole process they might have a good road mark and it will show that the project actually have prospects, and that is why their are people that make money from meme coins they understand pretty well how they make their money, so it is better to trust what you believe in because that is what they use in making money you have to trust what you believe in.

In a free market, demand and supply is all that determines the price.
There are factors that determine demand and supply, like the the quality, the packaging, the advertisement, the value, cost of production and so on. It is these things that will determine if people will buy the product on not. And it is it these things that the market will look at before agreeing at an equilibrium price.

The market looks at all the factors and agree that its a fair price to all (both the seller and the buyer)to buy a product at a particular price at a particular time.
Some times, the product may be overpriced, but that doesn't mean there is no equlibrum price. the lowest price the seller is willing to sell, if the buyer is willing to buy it at that price then they have arrived at an equilibrium, and that is te way it is with everything.

What does make a coin worth more? Hype.

People will buy anything that is deemed valuable by other people. Be it because they just do not want to be left behind or because they think buying it would be beneficial for them later in the future. This applies pretty much everywhere. This is why you see products giving out their own products to other people to promote and hype. So, more people gets attracted and thinks that oh it’s in demand > there must be a reason > let me buy it.

It’s how humans’ brains work.

Here are many cryptocurrencies in the market but BTC is the safest investment in the market today and in the future also . BTC is the famous cryptocurrency and it is safest investment because it is decentralized and nobody can control the price of BTC and anyone can buy and sell BTC in the market. Other like ETH, BNB etc is also a safest investment but that is cryptocurrency and you should invest in it if you have long term goal and if you have short term goal then you should invest your money in any business and gold because you can liquefy in that Investments without any loss but BTC is different from that and we can get lose by investment in BTC .Always research on the the new businesses and if possible you should invest a little money in that,you will get profit from that.

They will decide on the price based on demand and supply as well, with also cost of price at the same time as well.

We need to remember, each product costs something to the business, so that should always be the base price, you are not going to sell under that price, if you sell under it, then you are losing money, you also need to remember business has cost too, like taxes and salaries and what not, so you are going to put that into consideration while deciding on a price as well.

When you consider all of that, the only thing remaining is just what you are going to get with demand and supply. If there is a huge demand then we are going to end up with a lot more profit and this will result with a great situation.

What we are going to get with supply and demand is if people are demanding faster than what you are producing, then you increase the price to balance that out, the ideal situation would be you should sell at a price where you have basically zero left but also no more buyers left as well, if you sell at a price where product runs out of stock quickly and there are still buyers then you should increase the price, but if you sell at a price where there are products left then you should drop the price.

The answer would probably be "All of the above" in this case because there are a lot of things and factors that affect the price of a product in general. If we are to choose a combination among the given list, then I would probably go with scarcity + quality to be a combination that would make a product have a very high price value. You can think of Bitcoin as an example when you ask for this combination, it offers unique qualities, and it has a limited supply means it is scarce compared to other cryptocurrencies, hence, the high price value.

The price of a product depends on how good and useful it is, and among usefulness and good, you can include all the items from the list you have provided. Everyone would be willing to buy something that can be useful for them, and if it has good quality and it isn't available everywhere, its price will definitely be higher, so again, it all boils down to the supply and demand rule.

I find your discussion very meaningful.  You have explained the demand, price of a commodity or currency very easily and fluently in your writing.  Good quality of a product or product leads to higher value of that product.  At the same time it increases the trust of the buyers. The buyer then accepts it in the long run.  Again, the issue of pricing depends on how much people or buyers need the product.  In real life if a product is used more then its demand is always more.  OP another point you bring up is durability. Good quality products or product ingredients are very good quality.  Due to this the products are very durable and can easily win over the customers.  If the production of the product is easy, then its price is low and if the production is not easy, then its price is high. The products which are not easily available, i.e. the demand is more than the supply, the price of the products is high.  Again, if the population is high, there is a high demand for products.

Yeah, the bulk supply at a moment would imply low quality and consumers wouldn't want to purchase such products anymore. Recently, a specie of potatoes that was no longer found in our local market, because farmers stopped cultivating it, is now asked of after a while of diminishing return. So, any body who brings such specie to the market would sell at a high rate, until more farmers begin to grow the crop, sooner that special potato would be all over the market again, which would affect the quality and reduce the price. As some sellers will bring in poor quality produce, to meet the hot demand.

Yes, its just on that simple economics subject that we do all know on which it would really be that totally basing up on the supply and demand on which this is something which is really that something that mainly be considered but of course jut like been said by others that hype and interest will really be also relevant in speaking about a projects value because we do know that not matter how good it is when it comes to utility or quality but if the abscense of recognition is there then it would surely flop no matter what. We've seen different instances on where we do make investment on a good potential project but ending up on holding up some shit coin just because community or investor recognition isnt there. Thats why i would say that this factor is really that something relevant or really that needed on this case.

There are really just that those projects that it might look shit but ending up on having that enourmous increase just because of that community hype. One of the main reasons on why there are people whom
do really love on investing on low caps even on how shit it would be but theres still hopes that it would really be sending up that rocket and reaching out those numbers and make that
enourmous profits.

Yeah, sure, production costs matter. But have you ever looked at the Big Mac Index for example?  Clearly there are other factors at play beyond just material and labor inputs.




Right. Pricing ultimately boils down to what customers are willing/able to pay in a given market context.  Companies naturally want to maximize profits, so they will price according to local market conditions, not simply based on production costs alone.  There is definitely a strategy and art to pricing that has to balance consumer psychology, brand positioning, and financial objectives.  So you are right, its not as straightforward as input costs = output price.

Basically we can say it's supply and demand in general. This is true for products because we have been buying and selling based on that for a long long time, but at the same time we can say this for crypto currencies as well. We are talking about something which has been quite often seen as whatever amount people are willing to sell on a price and how much they are willing to buy. If people buy then price goes up until people stop buying, if people sell then price goes down until people stop selling.

This is why I honestly believe supply and demand is the only thing that matters, I do not think we are going to end up with anything more at any given time. This is going to take a while but we are going to end up with a good result eventually.

The sad thing about what we have right now is not to realize what we are going to pay for something for the future, because we do not know  what the demand or the supply will be like, so we do not make any estimates on what we are going to have in the end. I understand this is a difficult question to ask, but this isn't the guessing game, we need to take a look at the market and do technical analysis to see what the future of demand and supply will look like.

This is basic economics really and everyone who has been through the most simple education would have picked up on this - it's supply and demand. The very reason that capitalism is so popular after all, is that it tries to minimize the impediments to this process and create a structured framework for it to exist. It is the reason that communist systems like the Soviet Union and Mao's China failed so badly, because they tried to suppress a simple desire to trade which as a byproduct enables vast personal enrichment. If something is very popular and lots of people want it, then shrewd sellers will simply up the price to the point where they still sell. Otherwise resellers enter the market and take an extra bit of cream off the top.

Yeah they can but mainly what determines the price of goods is the production costs, transportation and other expenses that the manufacturer considers before selling his products.

The buyer also consider his own expenses before giving it a final price and if it isn't the consumer buying but a resellers, that's how the price will keep on increasing until it gets to the final consumer.

The demand for a product is another importance factor than the others you mention as they are secondary reasons that don't necessary influence the price of things. No matter how beautiful your product is or quality they're, when there's no demand for it, the value decrease and not increase.

In cryptocurrency many things can determine the increase, demand and supply is the first thing, speculation or news, is the second thing that can determine increase of bitcoin price, adoption of Bitcoin by well known companies can also determine the increase in Bitcoin, so we have different things that can make bitcoin to increase, so when the demands of bitcoin is high, it do risk rocket the increase of bitcoin, so therefore bitcoin doesn't have a particular thing that makes it to increase, if companies like Amazon and apple, embrace Bitcoin as a means of receiving payment from their clients, I think such factors can also make bitcoin to increase, that is as same as false information downgrade the price of bitcoin, so what makes Bitcoin increase can also make bitcoin to decrease in value.

Superior Quality
Superior Utility

Everything of this would really be completely useless if there's no hype and community back up on this one on which it would really be still ending up on failure because we do know
that this certain of factor would really be the outmost important. Come to think off or look at with those meme coins or those tokens which are built for the sake of fun and experimental?
They do make out some moon shot or reaching out 1000x or even more with just simply with that community hype and support on which this would really be causing up for its price to shoot up into those numbers
that we arent that able to expect on that it will really be able to do so, in compared into those projects which does have some solid utility and potential but still it wont really be
enough for it to beat into those coins or tokens made out by hype.

Determining precisely could be that very common but its not something that give out guarantees that it could be able to happen when it comes to pumping price.
There would really be those factors that could neither give out effect or wont really be that having no effect at all.

There are many factors that determine the price of a product and you forgot a few of the most important, marketing, hype and speculation, it does not matter if a product has superior qualities, if the marketing is bad or nonexistent then no one will buy the product, hype drives the price of a product much higher than what the characteristics of the product could command and speculation can move the price in either direction based on nothing but rumors, news or a small movement on the price.

Supply and demand of product and coin matters for the price of product or coin in the market. When product will be launch in the market then product price will be maintain if manufacturer will manufactur that product according to demand of product. If more people will like that product and they will buy that product and company stop that product to give in bulk then price of product will be up . The same thing will be happen when people will not take more interest in product and supplier supply that product in bulk then price will go down in the market.The same thing happens to the coin of cryptocurrency and we saw memecoin and their low price in the market due to more supply.

One major factor I've seen that determines the price of coins is partnership, collaboration, and investor adoption announcements. You know, whenever a coin is announced to be listed on Binance, its value increases instantly in anyone's mind. Similarly, when a big account announces a partnership, or when a project like Blum partnered with Dog coin, it gives Blum an edge due to Dogs coin's strong listing.

Partnerships and adoption announcements signal to investors that big players in the crypto world are investing in the coin, which increases its price and adds value to the market. Yes, that's one thing I've observed over time - seeing how partnerships and adoption announcements consistently drive up coin prices.

The price of a product is influenced by several factors including production costs, demand & supply dynamics, competition, perceived value & market trends. Things like economic conditions, consumer preferences & regulatory policies can also impact pricing. Businesses aim to set prices that maximise profit while remaining attractive to consumers.

In simple terms you can just describe it as the supply and the markets demand. The factors you listed down are essentially a break down of said "demand" but since a lot of people have different ones, it's really just generalized as "demand". It's also why you can't see any product be successful just like that because the players in the market have different demands or different levels of preference in terms of what they want from a product.

What OP said isn't entirely what "demand" consists of, not to mention that in most meme coins cases, demand is artificially inflated. If I were to specify what I guess it'd be the "demand to buy a product that can sell big later". Kinda specific-ish, but hey that's just how it works. People buy meme coins because prices are artificially inflated, so they want to ride it down and well, it's just whoever gets there first that profits more than anything else.

On the ground of low demand, diminishing return is a factor that determines reduction in prices of most products. When the demand gets higher than the production rate there'll be an increase in price, then sooner the commodity now becomes scarce and buyers begin to go for its substitute, so at the next season of production the former expensive product may not interest people anymore, and the producers will have no option than to reduce the prices to attract consumers. And when more people turns to it again, the price increases, and repeats similarly.

Yes, that apart from the high side, there is also a fall in value because people are also selling later on for the profits, as it was mostly the profit is their reason for being here. For those who didn't, they are those who are genuinely interested on the technology that is behind the currency. Not all here are successful of hodling and selling on their targets because like you said, apart from hypes there are also news (negative ones) or FUD, that can make them worry, panic and sell early even at a loss.

Bitcoin has been over a decade old now, so I won't say it is the fastest-growing currency or product, however if we are only talking about its value, it is acceptable due to its limited supply which helps the coin to rise higher than most currencies and other products out there. He was talking about marketing there but I think BTC isn't marketed in the past but it is amazing on how it find a way to the people.

This is only the power of recommendation. People are so overwhelmed about BTC after they discovered it and they think it would be a good idea to share this blessing to others. Traders doesn't really care about the use case of a project but they can still consider it, thinking it will get a demand due to its usefulness.

He isn't wrong but it can't apply to all crypto coins. IMHO, what OP described above can be applied on fundamental coins only. Meanwhile for meme coins with have no fundamentals, they have nothing to do with products, MVP, or the like. Meme coins are only focusing on the hype, so it is only about how the marketing will work effectively. In many meme coin projects, they have the marketing teams that popularize a lot the meme coins. So, it can attract the people's attention. That's why we often saw a group of meme coin armies.

Basically, all coins depend on the supply-demand. The marketing strategy is only aimed to increase the demand of the coins.
Anyway, in meme coins, they even have no products but they have big supply. So, the price of meme coins are mostly very cheap. The high supply is one of the reasons why there is no meme coins having an expensive price. I never saw a meme coin to have a price above $1.

* Good quality
* Utility/usefulness

These two would really be that primarily be the things that needs up for a project to make its price to be valuable and its not something
that could really be that ignored upon but of course it will really be needing up some sort of hype and interest of a strong community and with some mix of those
whales who would really be that getting interested on such project,because if we do really tend to look up with some shit projects or even with memes
on which it do really able to reach out those multi million or even billion mcap because of some hype and whales pumping out.

This is what makes that really that hard to predict on what project will really be pumping into the moon just because of these factors.

I'm not sure if it's appropriate for you to use product in this case because there is what is called general economic factors and there is what is called special economic factors and this is only a factor to the product itself. If you are talking about factors ttat determine the price of a coin, then you don't have to do the comparisons to general product because what drive coins is entirely different from what drives other products.

Some of the bullets you mentioned are true on the surface but deep down, coin price is much more than what you discuss. On a normal circumstances, what you mentioned are okay but you forgot there is much manipulations on and how they affect the price of a coin, the quality depend on the hype you know, even coins that are useless are hype as good just for them to sell in the eyes of the investors.

We can't compare about Bitcoin though, in the beginning there are no marketing about it, majority of us haven't heard of it when it started, it just grow overtime, thru word of mouth as internet is fairly young that time. And what separates it is that is started everything this whole crypto revolution. And even if it was promoted around 2017, still there are a lot of skeptics and there are a lot of negatives about it.

As compare to some altcoins that followed suit, yeah they could have like airdrop like Ethereum who become the cornerstone of altcoin markets. And then we have Litecoin, touted as the young brother of Bitcoin. But now it's totally different on how developers market their product, there are hype and they try to reach out to as many possible investors as they can.

You have made made good points and any product that has one or two of the would definitely have a good price in the market. But one thing that I consider as an important factor before deciding how much I pay for a product is the Utility/use cases. Of course if there are use cases of a particular product it will definitely create the demands for that product which will increase the price of the product as time goes on. I won't pay much for a product that doesn't solve any problem. Good quality and long lasting also comes in for me. The first three points listed are okay for me in deciding how much to pay for a product.

The factors that the OP stated really determined the price of a product. Because those factors are to be consider whether a product should be purchased in higher rates or lower rates. For instance:

GOOD QUALITY: if a supply has good quality to the consumers expectation, they will patronize the products within themselves and a lot of individuals will demand the product, they will not hesitate to pay the price no matter how higher it is.

UTILITY/USEFULNESS: the more the consumers find it useful and also witness the good and experienced the quality of the product the more they will demand for it, no matter how higher the price is. as long as the product doesn't lose it functionality.

HARD/EASY TO PRODUCE: The more energy and time it requires to become a product, the higher the price. The less energy and time it requires to become a product, the lower the price of the commodity. If the producers spent a lot of time and effort, and also use quality or expensive Raw materials, supplies and inputs in making the products, then it will be sell in higher price.

SCARCE/ABUNDANT: if a lot of people are demanding a particular product, and the product is less available(demand becoming greater than supply)then the product will be hard to find(scarce) and it price will rise higher. and if the price rise higher, the demand will decreases. Just as Law of demand stated "as the price increases demand decreases".

You have given good examples in terms of regulations however I would not say that Elon Musk's tweets have that much affect on bitcoin. On memecoins, yes it is easily affected by things like social media hype but Elon Musk does not have that much control over bitcoin that he can just tweet something and the market moves toward it. Dogecoin is the only coin I know that can be heavily affected by Elon Musk.
Unfortunately, some projects do not even have that much technological excellence to be valued high. It won't last long but it can certainly get expensive prices just from hype and community support alone.

This is exactly what get some products there edge against orders, the type of marketing and the investors there all so go a long way, for example bitcoin became a currency or product with the fastest growth rate at the moment as many investors are coming, the reason been that it solves the problems associated with the current traditional market. So every product coming in must try to break this niche and then when they get the attention the demand will actually be factor to increase the price.

Taking cryptocurrencies into consideration you will see even Altcoins coming through what the first tend Fi get is go with the trend and also get top or former successful project builders on their team and then it grows the price through demand. Look at this Alticoin called Solana; some Altcoins or shitcoin traders actually started to turn their attention to it when they found out that it uses less fees and it trading memecoins were a bit faster than Ethereum. This pushed the price of the coin from around $20 to $180 in less than a year, although I don’t fancy Altcoins but it tells you that once you can market the product well the price will be base on the demand

OP, the factors you mentioned above are no doubt what's responsible for the price of a product or coin to be on the increasing side but bringing all these factors to coins, you will begin to realize what pushes a coin to be high side or has a fall in price is because of the hype or news given about them on social media that got people to invest or dump it the more in the market, affecting its price.

Most investors we have this day in the cryptosphere don't even know about the utility of the coin they are investing in. What they are after is its quick profits and the hype the coin they investing in is receiving in the market. Every other thing about the coin they don't care to know about it

You said a lot if we factor in just the product but as for crypto coins, there are many hidden things that determine the price of coins. The demand and supply of a project determined how big the coin price will soar, the team behind the project if they have any reputation before the launch of tbe coin and how they developed the project, the way trend of the project if it's a new trend or just another repackage coin that is already in the market.

There are hidden features that I think we need to look into and they are not discus at the base level of the coin price, you have to use extra eyes to see this metrics, some involved chain analysis. There is high manipulation in crypto price and its because of the coin circulation, there whales and market makers that don't look at the base metrics, the metrics may be quack but the price can still be manipulatd to how they want it to be even though the project is rubbish. This may not apply to other products but coins specifically.

I agree about marketing. The better the marketing, the more convincing that the people will buy the product regardless of they need it or not. At the same time, the advertiser is also one of the reasons why a person buys a product. So, a good choice of the advertiser for the marketing is also one of the reasons why the convincing becomes greater and with that, the demand gets higher. But I believe that this is only a secondary thing about the valuation of the product.

The entire costs really differs per area and with the logistics, materials, manufacturing and stuff, that's how it is being determined based on how it's made. But with that, the category of marketing will get into the attractiveness of the product based on how it was marketed and advertised by the company. That's also giving the brand to have more value because of how much they're paying for their brand to get these deals with good marketers and endorsers.

I'm sorry, but i have to argue if you're a little bit wrong. This is because almost all of factors above were not really applicable to the meme token. And it seems to me you don't pay attention to the meme token.

A meme token's price fully depends on supply and demand. It ignores all the factors you mentioned. It lacks quality, is easy to produce, and is in heavy supply. But, these days, meme tokens gained more attention than utility products or coins.

Marketing.

Sometimes people don't even need a product, but they still buy it because they are persuaded by propaganda. Moreover, this propaganda also helps boosting the price of the product to unreasonable costs. Take Iphone for an example. It's not necessary to swap from model to model each new year paying a fortune for it, but people still do this because it's a matter of social and financial status.

Their necessity isn't to use the product itself, but to boast themselves to the social group where they are inserted.

When I purchase products that we need, I usually look at the quality of it. The longevity and sturdiness of it are bang for the buck. That's why I don't buy asap and still need to conduct some research and comparison of prices. If my needs suit the cheaper quality of the product and it's fine for some temporary use, I'd consider that. But for most of my things, I always look after the quality and compared to the cheap ones with daily use of the products, compute how much you'll save when you buy the quality ones than the many times of cheaper ones but lesser quality.

However, the first thing I consider before buying a product is its usefulness. I don't want to spend money on a product I don't need. Second, the quality of a product also matters to me, and most times, quality items are durable. Attractiveness, size, and ease of use are not usually under my consideration.

Government policies also play an important role in the price of a product or coin. If the policies of a country favor a coin, the price might increase. There have been speculations that if Trump wins the US elections the price of cryptocurrencies might skyrocket.

No need to make it complicated. Only supply&demand determines an asset’s price. Remember though, price and value are not the same thing. Since you said “price” in the title then it is what it is.

Buffett has a nice quote about that one:

“Price is what you pay, value is what you get.”

Some shitcoin might do a x100 run in a week. Its fundamentals ain’t no important. If the majority of the supply is in one guy’s hands, the price can go anywhere.

That’s why I try to invest in assets that have intrinsic value. I don’t like to speculate. When it comes to intrinsically valuable digital assets, you can’t simply beat bitcoin.

Quality only can be assess in practice. It's hard to assess it accurately on white paper or pitch deck that is easily polished by project teams to mislead investors.

Projects can promise with utility but people have to consider other things like is it safe for their money to use that cryptocurrency?

Long lasting means that cryptocurrency survives through many practical tests and many hardest times of the market, so if it managed to survive, it is good evidence of survival strength, quality and adoption of that cryptocurrency in societies.

Not true. Bitcoin Cash, an altcoin, with bigger block size than Bitcoin, has worse reputation, smaller adoption, and lower price than Bitcoin.

It is considerably less safer to use Bitcoin Cash blockchain for your fund transfers.
https://howmanyconfs.com/

When it comes to altcoins the main thing determining their "price" is hype and the pumping team's capability to maximize on that potential. Note that it is about price not value because value is only determined by utility while price can change based on a lot of things and most of the time it is not sustainable (like in the case of pumps).

It is the personal work of each person who is involved in the preparation of the back and also the seller. This is because of getting less money and not meeting household expenses. But some people also do this to get richer.That's why the company is making huge profits and People getting poorer and poorer but along with this, bad products are also recommended and many people suffer from this too.This is their pressure and people want to make money with this product but the company humiliates other companies in their profit cycles.This should not happen at all. Our government has harassed everyone for the high cost of everything. If the government does not borrow and taxes are not high, everything can be done.

I agree with all the factors you mentioned if we are talking about a consumer product in our real life. But if you rely on these factors to evaluate and price a coin, that is not entirely correct. I mean crypto market is full of scams and manipulations, everything is just empty ideas or theories. Aside from bitcoin, there is still no project that has practical applications or provides real-world use cases, so far. It's all speculation, bump & dump and disappear. Or to put it bluntly, crypto is like a giant casino, where nothing is trustworthy except bitcoin.

It is true that we need to rely on those factors to evaluate a new currency, but let's not be naive and believe too much in what they draw and want us to hear.

It is the perception game, especially in the context of new coins. If you are able to build a perception that your coin has huge potential to the upside, no matter what the reality is, your coin will have lots of buyers and holders. Product quality or usefulness is of less importance if you do not have the compatible perception of your coin in the minds of the masses.
So social perception is everything when it comes to new coins.
People do not care about legality, usefulness, technology, etc.; they just want the feeling of 'buying a coin that has 100x potential'. That is why these terms are like 10x. 100x, 10000x.. have become the defining feature of new coins; no one cares about going into details. Even people who understand that a particular coin is just a hoax will still buy it because they know that the social perception of the coin is on the upside.

Then we have tons of shitcoins with at least $100 Million market caps that don't give any usefulness, easily created, unlimited supply, etc etc.

What you mentioned above are mostly related to "cost" which obviously you will not sell lower than your cost! at least you sell above from your cost in order to earn profit.

I would say what determines the price is market price (how much other people sell it), marketing and the way you manipulate your product.

I think that on top of what you wrote, there is one thing that you haven't mentioned - Manipulation. There is manipulation everywhere, in coin, in produce price. Top businesses always try to make monopoly or cartel agreement. During monopoly, they can play with the price of the product or the service the way they want because they are the only producers and users are forced to pay whatever the company wants them to pay. During cartel agreements, companies agree to sell the product for a specific price and do not sell it lower than a certain price. They sometimes manipulate the supply to artificially increase the price or cause panic in people.
There is a lot of price manipulation in cryptocurrencies where whales either increase or decrease the price to liquidate long positions or short positions.

All the above mentioned are all good factors that can increase the product or services in terms of demand but it can also have some little disadvantage, however let's talk about a good quality products, we no that almost everybody will always go for the good quality products because that is what determines the longevity but let's not also forget that the price will also be very high and there could be some persons who may not afford it so they would go for the ones that are less quality in other for them to afford it, so that's how most consumers behaves sometimes.

However in terms of making a product scarce, actually is also another thing that makes the price go very higher but only if the thing has a significant meaning to the public, so there would always be people who would buy at any amount of money but if in a case were people do not value it even if it becomes scarce nobody would even notice it because I have visited a friend numerous times on his business and I saw so many product who have been there for years in his shop without anybody coming for it do to the fact that nobody is interested on such product even if is very rare in the market and now he is planning to sell at any price to avoid losing completely when it expires, so actually before thinking about any scarcity, the product must be very importance to the consumers.

Some things to add from my point of few, regulation may play a huge role in setting demand, as new laws and government bans can result in large drops in price. On the other hand, favorable regulations raise demand. For example, the banning of crypto mining in China depressed Bitcoin's prices, while the opposite of that pro crypto moves in countries such as El Salvador and Hong Kong-have been a catalyst for the bullish trend. Media can also influence demand strongly. Good news can send the price soaring, as with Elon Musk's tweets; bad news can trigger panic selling.

On the other hand, not everything that is very difficult or very long to produce is always in high demand. For example, in cryptocurrency, it can be found very often that new technological advancements with faster speeds of transactions oust the very difficulty of how it was mined. It's also not just piecing together the most important on the list but takes into consideration how external influences such as regulation and media can influence demand.

You have pretty much summarized the factors that drives the demands and supplies of products. It's true that demand for a product don't just happen, there must be factors that drives it and you have expanciated on most of them. What I can add is that when it comes to a cryptocurrency like Bitcoin, news is one of the determinant factors that can affect it's demand and supply. It could be news of war, crisis, a country or whales dumping their BTC into the market, disasters etc. Bitcoin is volatile and a speculative asset so basically news is one of the fundamentals that determines it's price.

Some general factors impact the price of a commodity or coin, and you have indeed enumerated them. There are however other factors which can influence the demand significantly. For example, perceived value and branding will carry more effects on the prices rather than product quality or value. The reasons behind the higher price of luxury brands or popular cryptocurrencies such as Bitcoin are because of the amount of trust and awareness that they create. But of course, there's also the role of market sentiment and hype. Especially true in cryptocurrencies, this one can spike demand caused by fear of missing out (FOMO). Meanwhile, shocking bad news can cause the market to drop sharply. Innovation and uniqueness are very important. If a product or coin offers a new solution or solves a specific problem, it will get a premium price.

Additionally, there are governmental regulations in terms of demand. More specifically, in this crypto space, a positive policy can certainly boost the demand, whereas illegal policies may drop the demand drastically. Network effects are also important. For example, as more users enhance the value of a digital product or coin, for example, Bitcoin goes up with more people using it. Lastly, macroeconomic factors such as inflation interest rate and uncertainty of the economy may affect demand. This holds particularly for the assets that are considered store of value. When economic activity is unstable People may want to reposition their assets to cryptocurrencies like Bitcoin. Pushing both demand and prices upwards and these bigger factors, when added to the factors you listed forms a more comprehensive view of what is influencing the prices within the market at this time.

Ofcourse, alot of us already know demand and supply are the main determinants of price of products or coins.
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)

* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size,  higher the price
* Attractiveness: the fancier, the more demand
Etc,

I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.

What do you think?




Related post:
Do you compare prices or bargain before making purchases?
https://bitcointalksearch.org/topic/--5512379